The Petrol Dollar
 

Anyone familiar with Petrol Dollar Recycling? There is a good link here if you would like to read up on the concept.

http://www.trinicenter.com/oops/iraqeuro.html

The basic gist is this: All oil is traded in us dollars. The OPEC members who sell the oil have no use for the billions generated, so they put it in US banks. Why? Because to convert it to other currency costs them money. Like changing cash at the airport after you visit another country, you have to buy money from another currency.

So, billions a year get pumped into the US economy investments and banks, all because oil is traded in dollars. Also, all countries in the world that want to buy oil, and thats EVERY country, has to buy US dollars to purchase oil.

This keeps the demand for the US dollar high and allows the US to borrow against future monies. This is why the US is the only country that can run such a high deficit.

However, Sadaam days before the current war switched all Iraq's currencies to Euros. This effectively would mean billions a year would be lost in the states. There are some that say this is why the US invaded so quickly withuot proper planning, because the first thing the US did after taking over was switch the Iraq currency back to a system based on the US dollar.

http://en.wikipedia.org/wiki/Petrodollar_warfare

Well folks, today, Syria announced it is now switching to the Euro, and Iran has threatened if brought before the security council it will do the same.

http://www.worthynews.com/news/upi-c...-013206-2660r/

Sound like a pointless threat? Well, it effectively would mean the US economy would literally take one hell of a beating in a matter of hours. If the US could no longer grow the deficit, and the rest of the world thought that the US couldn't pay back the debt already incured, well lets just say the US would be in for one hell of a wake up call.

It would effectively mean the literal bankrupting of the US government, and that the US dollar would drop down to lower than the peso, all in a very short period of time.

Curious to see how this pans out...

Ok. You keep those little fingers crossed extra tight and wait for that US ground invasion of Iran. It'll happen and you'll show everyone! Including the Pentagon.

What do you do for a living, Robster? Wait. Let me guess; you're a weatherman. http://us.i1.yimg.com/us.yimg.com/i/...ticons7/21.gif

I don't know, ask whoever's you've been talking to about me. I like how you had no idea what eyesofatragedy looks like, or that she even posts pictures (or videos), yet you immediately latched onto "deducing" me as being a "her" that "unconditionally defends the Bush Administration." I find that funny, especially when you don't even know my positions on the Iraq war cause you didn't want to look up any more of my posts and all you've had to go off of from viewing me is an avatar of a Russian pistol.

You want to know? Speculate. Other members know, of course. You won't. http://us.i1.yimg.com/us.yimg.com/i/...oticons7/4.gif

No need to apologize, X. No need at all. You did refer to me as that, but only after Rob did on the Iran and Iraq thread. Him doing it first is what made me supicious of this troll's affiliation with another member of this board. That and he follows a pattern of posting that we've seen many times before.

Heh.

'Associating' with members, eh? Or maybe he is another member?

I can think of a couple, but only one sticks out for sure.

:p

bang BANG!

Yeah, he pwns us all, cuz he's related to Conan.

And you wish it had been you, dontcha?